Quad/Graphics Goes Negative
Quad/Graphics (NYS: QUAD) filed its 10-K on Feb. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Quad/Graphics beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Quad/Graphics logged revenue of $1.31 billion. The three analysts polled by S&P Capital IQ expected to see a top line of $1.28 billion on the same basis. GAAP reported sales were 3.4% lower than the prior-year quarter's $1.26 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.87. The three earnings estimates compiled by S&P Capital IQ predicted $0.96 per share on the same basis. GAAP EPS were -$0.15 for Q4 against $0.55 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.2%, 40 basis points worse than the prior-year quarter. Operating margin was 8.0%, 130 basis points worse than the prior-year quarter. Net margin was -0.6%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $941.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $4.03 billion. The average EPS estimate is $1.82.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 14 members out of 26 rating the stock outperform, and 12 members rating it underperform. Among three CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Quad/Graphics a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quad/Graphics is hold, with an average price target of $18.67.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.